IMHO, it is not negative for CreditAccess in terms of creating more competition. They have one of the lowest NPAs, a very good collection efficiency and a good network in tier 2 and tier 3 regions. So far, they have been going into regions where there is not much competition. The opportunity is still huge. With the govt push, it could actually benefit CA with the customer base expanding more rapidly.
Meanwhile, it will take a long time for other players to enter and eventually hit NIMs of CA.
I find valuation of CA is now a bit more attractive than early this year. They have been growing their book value consistently without taking any hit or having any controversy.
Disc: Invested and biased. Might add a bit more.
| Subscribe To Our Free Newsletter |
